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Manufacturing performance measurement and target setting: A data envelopment analysis approach

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  • Jain, Sanjay
  • Triantis, Konstantinos P.
  • Liu, Shiyong

Abstract

Manufacturing decision makers have to deal with a large number of reports and metrics for evaluating the performance of manufacturing systems. Since the metrics provide different and at times conflicting assessments, it is hard for the manufacturing decision makers to track and improve overall manufacturing system performance. This research presents a data envelopment analysis (DEA) based approach for performance measurement and target setting of manufacturing systems. The approach is applied to two different manufacturing environments. The performance peer groups identified using DEA are utilized to set performance targets and to guide performance improvement efforts. The DEA scores are checked against past process modifications that led to identified performance changes. Limitations of the DEA based approach are presented when considering measures that are influenced by factors outside of the control of the manufacturing decision makers. The potential of a DEA based generic performance measurement approach for manufacturing systems is provided.

Suggested Citation

  • Jain, Sanjay & Triantis, Konstantinos P. & Liu, Shiyong, 2011. "Manufacturing performance measurement and target setting: A data envelopment analysis approach," European Journal of Operational Research, Elsevier, vol. 214(3), pages 616-626, November.
  • Handle: RePEc:eee:ejores:v:214:y:2011:i:3:p:616-626
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    References listed on IDEAS

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    Cited by:

    1. Ehsan Pourjavad & Rene V. Mayorga, 0. "A comparative study and measuring performance of manufacturing systems with Mamdani fuzzy inference system," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-13.
    2. Liu, Wenbin B. & Meng, Wei & Mingers, John & Tang, Ning & Wang, Wei, 2012. "Developing a performance management system using soft systems methodology: A Chinese case study," European Journal of Operational Research, Elsevier, vol. 223(2), pages 529-540.
    3. Yeong, Wai Chung & Khoo, Michael B.C. & Lee, Ming Ha & Rahim, M.A., 2013. "Economic and economic statistical designs of the synthetic X¯ chart using loss functions," European Journal of Operational Research, Elsevier, vol. 228(3), pages 571-581.
    4. Piran, Fabio Antonio Sartori & Lacerda, Daniel Pacheco & Camargo, Luis Felipe Riehs & Viero, Carlos Frederico & Dresch, Aline & Cauchick-Miguel, Paulo Augusto, 2016. "Product modularization and effects on efficiency: An analysis of a bus manufacturer using data envelopment analysis (DEA)," International Journal of Production Economics, Elsevier, vol. 182(C), pages 1-13.
    5. repec:eee:proeco:v:193:y:2017:i:c:p:677-690 is not listed on IDEAS

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